What is Robert Kiyosaki's investment advice?
Kiyosaki's favored way to invest is for cash flow. There are many ways to do this. One of the most obvious is to invest in rental real estate. If you buy the right property at the right price, you can earn enough rental income to not only cover your costs but also provide you with positive cash flow.
Kiyosaki would recommend owning hard assets like gold and silver, which you can physically touch and represent actual items of value. Kiyosaki also believes in owning income-generating real estate, such as rental properties.
Kiyosaki recommends “The 3 Piggy Bank System.” Under this system, 70% of money received monthly is put towards bills, while 10% each is allotted for savings, investing and charity. In doing this, money is split into categories that will allow for wealth to grow, but expenses such as rent are still being paid off.
The BRRRR method is a real estate investing strategy that involves buying properties, renting them out, and then selling them. The BRRRR method was created by Robert Kiyosaki in his book “Rich Dad Poor Dad” and is used by many real estate investors today.
In my opinion, I like to see income coming in from all the asset classes — business, paper assets, commodities and real estate. That's true “diversification” of your assets, and a safety net that's a way of hedging your “bets” in any one investment arena or sector.
1. Stocks. Almost everyone should own stocks or stock-based investments like exchange-traded funds (ETFs) and mutual funds (more on those in a bit). Stocks have consistently proven to be the best way for the average person to build wealth over the long term.
That's why I love Bitcoin," he posted on X. Saying Kiyosaki is bullish on BTC is an understatement. Kiyosaki said that with the combination of scarcity, utility and institutional interest, BTC will reach $300,000 per coin by the end of 2024.
Robert and Kim eventually came up with the 10/10/10 plan. Every month, they took 30% of their paychecks, and divvied it up like so: 10% Investment - Each month they set aside 10 percent of their income for great investment opportunities. They typically chose to invest in real estate.
- Employee.
- Sole Proprietor/self-employed.
- Business Owner.
- Investor.
The thing I always say to people is this: 'If you avoid failure, you also avoid success. '
Why doesn t Robert Kiyosaki invest in stocks?
Market Volatility: Kiyosaki emphasizes the volatility of the stock market and the potential for significant fluctuations in value. He suggests that market downturns can erode wealth, and investors should be cautious about relying solely on the stock market for long-term financial security.
He stated, “I own about 12,000 rental units, but the real story is how did I acquire those properties. I use debt.” Kiyosaki emphasized that contrary to conventional wisdom, he leveraged debt to acquire more properties and consequently reduce his tax liability.
Robert Kiyosaki's Financial Philosophy
Kiyosaki's philosophy about money is simple: You don't need to have a high income to become rich. Instead, he says, the key to building wealth lies in two things: Building a portfolio of passive income-generating assets. Minimizing debt5.
For Kiyosaki, silver and other precious metals are better to hold on to because they are scarce, real, usable assets that don't get devalued due to inflation like the dollar does.
In his famous book, Rich Dad, Poor Dad, Robert Kiyosaki introduces the concept of the cash flow statement. (He technically calls it an income statement but I like cash flow statement better.) It's basically a simple diagram to help show in general terms where your money is coming from and where it goes.
According to Robert Kiyosaki, cashflow is the central difference between generating income in the E (employee) and S (small business owner) quadrants and the B (big business owner) and I (investing) quadrants. Here is how cashflow looks like in the E and S quadrants vs. the B and I quadrants.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
- Pay off high-interest debt. ...
- Build an emergency fund. ...
- Build a CD ladder. ...
- Get your 401(k) match. ...
- Max out your IRA. ...
- Contribute to your HSA. ...
- Invest through a self-directed brokerage account. ...
- Open a high-yield savings account.
- Family and Friends. Raising investment money from family and friends is both the most accessible and the most dangerous way to go. ...
- Seller Financing. ...
- Cash Flow Financing. ...
- Lender Financing. ...
- Assumable Loans. ...
- Outside Investors. ...
- The Bottom Line.
Tying your cash up in assets reduces your purchasing power, but Kiyosaki and Rule say gold is extremely liquid. If gold prices go up, you have an asset that you can quickly convert into cash in the face of economic uncertainties.
Does Robert Kiyosaki own ethereum?
Kiyosaki said he is into blockchain and owns Ethereum. “I'm still in favor of Bitcoin. I'm not against it as many people in my genre, in my age group, are, because I think Bitcoin is solid. I'm actually more into blockchain and I do own Ethereum.”
The idea behind the rule is that, by withdrawing 6% or less of their savings each year, an individual can account for inflation and still have a reasonable level of income throughout their retirement.
The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.
If you find yourself in this situation, consider the “Rule of Three:” When you have an unexpected windfall, put 1/3 of the windfall towards paying down debt, 1/3 towards long-term saving and investing, and the remaining 1/3 towards something rewarding or fun.
Robert Kiyosaki's teachings offer a roadmap to financial freedom through diverse passive income streams. His top six assets for 2024 — real estate, dividend stocks, business ownership, intellectual property, paper assets, and covered call strategies — provide a comprehensive approach to building wealth.
